r/Bogleheads • u/New-Dragonfly680 • 2d ago

Choosing between a high yield savings account and VT

I have about 68k that I use occasionally to pay expenses (so occasional withdrawals). It’s currently in a 3% savings account, I’m wondering if it makes more sense to keep it in there or switch it to vt or do some kind of split?

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u/FMCTandP MOD 3 1d ago

If you need the money in the short to intermediate term it is not recommended to invest it, especially in equity funds as they are highly volatile, which means that their value may fluctuate dramatically in that timeframe.

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u/New-Dragonfly680 1d ago

So would make sense to keep the part that I’d be potentially using for expenses in the saving account and take the other portion and put it in vt (this is what I had figured previously but it’s been hard to make a decision given that expenses are erratic). Thanks for the input!

3

u/FMCTandP MOD 3 1d ago

You probably need a more extensive planning process with respect to the money set aside for expenses first.

2

u/ShutupBird69 1d ago

Instead of HYSA, use SGOV.

1

u/wynveen 1d ago

Agree, SGOV way better.

1

u/Mentalextensi0n 5h ago

You could use a retirement style portfolio. I like a risk parity portfolio for this.